Aerospace / Defense & Winter 2021 Government Technology ......28 24 34 39 28 37 38 32 29 54 36 26 14 13 28 24 21 24 36 30 46 0 10 20 30 40 50 60 Apr-19 May-19 Jun-19 Jul-19 Aug-19

Aerospace / Defense & Government Technology Services

MarketView Winter 2021

Winter 2021Aerospace / Defense &

Government Technology

Services



KippsDeSanto’s 2020 TransactionsKippsDeSanto (“KDC”) closed 20 deals in 2020(1), including six deals in 4Q20

2

April 2020

has been acquired by

March 2020

has received an investment by

February 2020

a portfolio company of



to form

January 2020March 2020

May 2020 May 2020May 2020June 2020

September 2020

September 2020 August 2020


a subsidiary of

September 2020

November 2020November 2020December 2020December 2020December 2020December 2020

has received an investment by



has been acquired by has been acquired by


a subsidiary of

have been acquired by

andhave been acquired by



has been acquired byhas been acquired byhas been acquired byhas been acquired by has been acquired byhas been acquired byhas been acquired by

(1) One transaction has not been publicly announced due to buyer confidentiality



11 11

18 18

1116

1116

12

28

17

116 4 5 7 5 5

13

511

118

10 12

5

9

10

10

8

14

10

5

4

2

1011

10 9

12

10

15

6

5

6

9

12

1217 6

9

12

9

10

47

13 66 10

11

15

20

28

24

34

39

28

37 38

32

29

54

36

26

14 13

28

24

21

24

36

30

46

0

10

20

30

40

50

60

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Aerospace Defense Government Technology Services

3

M&A Trends & Activity

2Q1986 deals

3Q19104 deals

4Q1999 deals

1Q20116 deals

2Q2055 deals

3Q2069 deals

4Q20112 deals

Buoyed by the pending vaccine rollout and increased comfort level of consummating transactions in a remote environment, deal activity in 4Q20 continued to recover in the wake of the COVID-19 pandemic. Embracing a “new normal” has allowed strategic buyers to revise M&A strategies and pursue deals that enhance capabilities and achieve scale, while private equity groups (“PEG”) have been increasingly active as they look to deploy large reserves of dry powder

▪ Although Aerospace M&A activity remains below pre-pandemic levels, the sector saw its strongest quarter since the onset of the pandemic, bolstered by a positive economic outlook and robust M&A market

▪ Both Defense and Government Technology Services (“GTS”) M&A activity have returned to pre-pandemic levels as market stabilization has increased buyer confidence and encouraged both strategic and private equity buyers to conduct M&A activity

11 11

18 18

1116

1116

12

28

1711

6 4 5 7 5 5

137

13

118

10 12

5

9

10

10

8

14

10

5

42

1011

105

12

9

14

6

5

6

9

12

1217 6

9

12

9

10

47

13 66

5

11

15

19

28

24

34

39

28

37 38

3229

54

36

26

14 13

28

2421

15

36

31

46

0

10

20

30

40

50

60

Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Aerospace Defense Government Technology Services

Source: S&P Capital IQ, DACIS, KippsDeSanto research



4

Highlighted 4Q20 Industry Transactions

▪ Lockheed Martin (NYSE: LMT) has agreed to acquire Aerojet Rocketdyne (NYSE: AJRD) in order to bolster LMT’s space, missiles, and hypersonics portfolio

▪ The transaction is expected to close in 2H21, as AJRD will be integrated across LMT’s Aeronautics, Missiles, and Fire Control and Space business areas

▪ PAE (NASDAQ: PAE) has acquired CENTRA Technology, Inc. and Metis Solutions Corporation

▪ The two acquisitions are expected to expand PAE’s capability set and widen its customer footprint with Intelligence and National Security customers

has agreed to acquire

▪ Mercury Systems’ (NASDAQ: MRCY) acquisition of Physical Optics Corporation (“POC”) broadens Mercury Systems’ avionics product portfolio

▪ POC deepens partnerships with defense primes and system integrators while expanding MRCY’s footprint with U.S. defense end customers

▪ The acquisition of Braxton by Parsons (NYSE: PSN) bolsters PSN’s solutions, products, and capabilities in the growing space, cyber, and intelligence markets

▪ Braxton adds critical intellectual property that expands PSN’s capabilities for the U.S. Air Force, Space Force, and Space and Missile Command

EV / Revenue: ND$300MEV:

has acquired

▪ Upon an expected close in 1H21, Veritas will incorporate the Federal IT and Mission Support Services business of Northrop Grumman (NYSE: NOC) into its portfolio company, Peraton

▪ The combination will create a leading Government mission capability integrator and IT provider focused on delivering high-end, technology-enabled services

$4,400MEV / Revenue: 2.16xEV:

EV / EBITDA: 14.6x

EV / EBITDA: NDEV / Revenue: ND

$92MEV: EV / Revenue: ND

$208MEV:

EV / EBITDA: 9.7x EV / EBITDA: 8.8x

and

EV / Revenue: 1.48x$3,400MEV:

EV / EBITDA: ND


Federal IT and Mission Support Services business

has acquired

has acquired

METIS CENTRA

$310MEV / Revenue: NDEV:

EV / EBITDA: ND


Note: ND = Not Disclosed(1) Metis deal was announced in November; CENTRA deal was announced in October

Announced December 2020 Announced December 2020

Announced December 2020 Announced December 2020

Announced November& October 2020(1) Announced October 2020

$125MEV / Revenue: NDEV:

EV / EBITDA: ND▪ Vectrus (NYSE: VEC) has acquired Zenetex,

accelerating VEC’s converged infrastructure strategy through the addition of integrated security capabilities

▪ The transaction will also further expand VEC’s Intelligence Community (“IC”) and Foreign Military Sales (“FMS”) client portfolio



30.8x 27.9x

24.9x

19.5x 16.9x

14.0x 13.6x 13.1x

10.0x 9.1x 8.9x 7.7x

40.0x

29.2x

41.1x

19.4x

12.0x 12.1x 8.7x

12.8x 11.2x 10.5x 8.6x

19.3x

26.6x

33.8x

47.7x

23.5x

11.1x

22.9x

12.8x 16.5x

12.6x 13.2x 13.9x

17.9x

0.0x

10.0x

20.0x

30.0x

40.0x

50.0x

16.1x

12.9x11.3x 11.2x 10.9x

6.9x

11.1x12.4x

11.4x10.3x 10.0x

7.3x

14.5x

11.8x10.4x 11.2x 10.7x

7.3x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

15.5x

13.6x 13.5x 13.4x12.0x 11.3x 11.3x

9.6x 9.2x8.4x

16.2x

12.9x 13.4x 12.9x

11.1x 11.1x

8.4x 8.4x 8.6x

6.8x

16.0x 15.4x13.8x 13.4x

12.4x 12.4x

8.9x9.7x

8.0x8.7x

0.0x

5.0x

10.0x

15.0x

20.0x

EV / NTM EBITDA Public Market Valuation Trends

Def

ense

GTS

= As of June 30, 2020 = As of December 31, 2020

Aer

ospa

ce

Aerospace public multiples were boosted in 4Q20 by the continued market rebound, while low NTM EBITDA metrics across the board contributed to a higher median multiple. GTS also saw an uptick, while Defense multiples remained largely in line with past quarters

5Source: S&P Capital IQ = As of September 30, 2020

4Q20 Median:

17.2x

4Q20 Median:

10.9x

2Q20 Median:

13.8x

3Q20 Median:

10.7x

3Q20 Median:

12.5x

2Q20 Median:

11.2x

4Q20 Median:

12.9x

3Q20 Median:

12.0x

2Q20 Median:

12.0x



(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Oct-20 Nov-20 Dec-20

Aerospace Defense Government Technology Services S&P 500

Government ServicesThe Government services index outpaced the S&P 500 by 8.5%+, driven by a strong start to 1Q20 followed by many companies’ abi lity to continue to earn Federal, state, and local dollars by having their workforce work remotely from home

VSE saw the index’s steepest decline during the quarter, seeing a price decline of 56.9% in 1Q20, while Booz Allen Hamilton rebounded well from the initial shock, only dropping 3.5% in 1Q20

Government Technology ServicesThe GTS index outperformed the broader market in the fourth quarter as the industry’s proactive and positive response to the COVID-19 environment resulted in strong earnings and growth expectations

Reports of a strategic assessment, which includes the possibility of a sale, drove shares of Perspecta (NYSE: PRSP) up 23.8%. The Company has also won several large-scale contracts to support U.S. space development, cyber, and national security priorities

DefenseDefense stocks outperformed the broader market as a result of many companies / services in the sector being deemed essential and therefore less impacted by the global pandemic than the overall market

Backtracking from previous quarter gains, Raytheon’s stock slid 40.3% in 1Q20 ahead of the Company’s anticipated merger with UTC

DefenseDefense firms trailed the Aerospace Index and S&P 500, but industry officials remain optimistic that the incoming administration will prioritize mission-critical research and development programs

Shares of Huntington Ingalls Industries (NYSE: HII) rose 21.1%, driven by a robust backlog to deliver warships, surface vessels, submarines, and unmanned systems –programs that are expected to continue as national defense priorities

16.4%4Q20 Performance

AerospaceThe commercial aerospace market has been significantly impacted by the COVID-19 pandemic, with global and domestic travel restrictions dramatically reducing the number of airline passengers

Adding to Spirit AeroSystems aliments due to the 737 MAX production issues, the COVID-19 pandemic pushed the Company’s stock to drop 67.2% over the quarter

AerospaceCommercial aerospace stocks soared in the final quarter of the year after the FAA’s announcement to clear Boeing’s 737 MAX to resume passenger flightsnearly two years after the jet was initially grounded

The FAA’s clearance of 737 MAX jets to resume passenger flights sent Spirit AeroSystems (NYSE: SPR) shares up 106.7%, as the manufacturer supplies most of the parts on the 737 MAX and will look to capitalize on a revived orderbook


(25.1%)LTM Performance

(11.7%)LTM Performance

7.9%LTM Performance

6

Equity markets experienced a substantial resurgence in 4Q20, as deployment of the first COVID-19 vaccine bolstered investors’ optimism for an economic recovery in 2021. Within the public sector, Civilian and military budgets face downward pressure from additional COVID-19 stimulus, but the new administration is expected to push forward with Federal modernization plans and critical national defense programs

Equity Capital Markets Performance

Source: S&P Capital IQ


11.7%

38.7%

16.4%

6.6%

15.3%

(25.1%)

7.9%

(11.7%)

11/03/20:U.S. Presidential Election

11/18/20:FAA clears the Boeing 737 MAX to resume passenger flights after grounding the

aircraft for nearly two years

12/11/20:FDA approves the first coronavirus vaccine for

emergency use in the U.S.

Indexed 1 Year Return Indexed 4Q20 Return

(80.0%)

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

Jan-20 Apr-20 Jul-20 Oct-20

Aerospace Defense Government Technology Services S&P 500



Aerospace and Defense Update

7Source: Boeing Company Website, Defense News, Office of the Under Secretary of Defense (Comptroller) FY 2021 Green Book, Wall Street Journal

Boeing 737 MAX Returns to Service Amid Diminished Travel Demand

On November 18th, the FAA cleared Boeing’s 737 MAX jet to resume passenger flights after the planes were grounded for nearly two years during the ongoing investigation

737 MAX Recertification

Despite suppressed travel demand from COVID-19, Boeing’s current backlog remains stable, and the Company will seek to move existing inventory and reinitiate full-rate production of the jets in the coming year

--> Maneuvering Characteristics Augmentation System (“MCAS”) Software Enhancement

--> Validation by Regulators and Sustained Flight Testing

--> Pilot Training Developed with Global Aviation Community

--> Continued Preparation, Inspection, and Support of New and Existing Aircraft

Boeing has already completed deliveries of the 737 MAX to United Airlines, American Airways, and Southwest Airlines, and it has also received new orders, most notably from Ryanair for 75 jets

Unfilled OrdersAs of Nov. 30, 2020

DeliveriesExpected in 2021

4,000+ ~180

Growing Demand for Space Exploration and Satellite Infrastructure Drives M&A Activity

Strategic and private equity buyers continue to covet high-growth assets in the space industry, as commercial investment surges alongside increasing Federal budgetary trends

The newly-established Space Development Agency, tasked with building the National Defense Space Architecture, targets launching 1,000 satellites by 2026 – a goal that will require rapid pacing and sustained investment

Incoming Biden Administration Sets Expectations for National Defense Strategy

President-elect Biden is expected to expand upon the Trump administration’s investments in emerging technologies with R&D funding as a key priority to countering the growing technological threat from China

The current defense strategy calls for the rapid modernization and replacement of legacy systems throughout the defense force structure with ever-advancing technologies

Although COVID-19 has placed pressure on flattening the defense budget, the Biden administration is not expected to seek major spending cuts, as military superiority remains a priority in the current threat environment

The 2021 national defense bill was passed into law after the U.S. Senate and House of Representatives voted to override President Trump’s veto of the $740 billion spending bill

Unmanned Systems

Cyber Warfare

SpaceArtificial

Intelligence (“AI”)

Key areas of investment include:

Notable 4Q20 Space Transactions

KDC acted as financial advisor in this transaction

Acquirers seek high-growth space acquisitions that provide mission-critical intellectual property and serve sought-afterFederal and military space customers, with a concerted focus on National Security

737 MAX Metrics

Announced Deals in 2020

31Sustained M&A Activity in the Space Sector

Announced Deals in 2019

25



Government Technology Services Update

Cybersecurity Remains M&A Focus Area

Urgent demand for cybersecurity capabilities is driving M&A activity in the sector as strategic and Private Equity buyers seek to gain value-add capabilities that have a defensible market position. With 19 transactions announced in 4Q20, cybersecurity M&A activity mirrors pre-pandemic levels and approaches historic activity witnessed in 2019

COVID-19 Accelerates Government Network Modernization Efforts

8Source: FedScoop, Government Executive, National Taxpayers Union Foundation, Federal News Network

Presidential Election Shifts Budgetary and Policy Focus Towards Civilian Agencies

Recent Representative Deals

With 19 cybersecurity M&A transactions announced in 4Q20, activity exceeds pre-pandemic levels and eclipses

historical highs witnessed in 2019

User

App

Device

Cloud-based Verification

Remote-network Security

Buyer Buyer TargetTarget

Key Civilian Agency Changes

Expected to receive $300 billion over four years to support medical research and development (“R&D”). Additionally, NIH will also receive $50 billion over four years to conduct cancer, diabetes, Alzheimer’s disease, and Parkinson’s disease research

National Institutes of Health (“NIH”)

Center for Disease Control and Prevention (“CDC”)

Granted ~$4 billion to administer the COVID-19 vaccine rollout, with additional authority regarding COVID-19 policies and processes

Department of Veterans Affairs (“VA”)

~$16 billion to support enterprise-wide IT modernization efforts across the VA

▪ Recent Executive Order encourages Civilian agencies to prioritize adopting AI capabilities to accelerate their missions

▪ Federal contractors that have strong AI capabilities and are well-positioned within Civilian agencies are poised to capitalize on favorable budgetary tailwinds

Federal IT and Mission Support Services business

( )

Department of Health & Human Services (“DHHS”)

Expected to establish the Office of Climate Change and Health Equity within DHHS to spearhead mitigating impacts of climate change

IT and Network Challenges→ Additional internal and external personnel migrating to remote operations has exposed network bandwidth, cybersecurity, and communication challenges across the Federal GovernmentShort-Term Remedies → The Government is fast-tracking programs to address growing IT needs. Such programs include GSA’s Enterprise Infrastructure Solutions (“EIS”) vehicle, which has issued $7.4B in awards in the past several months and has required awardees to be 50% transitioned off the legacy contract, months ahead of schedule. EIS is expected to be the catalyst for broader IT modernization across the Government as it establishes the foundation for agencies to adopt NexGen IT capabilities, including cloud computing, big data analytics, and AILong-term Solutions→ The Government is boosting migration towards centralized, zero-trust architecture as it implements the Joint Enterprise Defense Infrastructure (“JEDI”) contract, which will accelerate zero-trust adoption. Additionally, broad adoption of 5G networks will accelerate system efficiency and logistics management

Zero-Trust Architecture Overview

(# of M&A Transactions)The global pandemic has accelerated Government IT modernization initiatives as increasing Federal employees and contractors transition to a work-from-home environment highlight network and IT areas for improvement

Transitions cyber architecture from static, network-based perimeters to selective identity-driven data access

Renewed Emphasis on AI

Contractors with strong past performance and qualifications in cloud, cybersecurity, and network migration stand to

benefit from increased Federal attention

Cybersecurity M&A Activity by Buyer Type

7 63

10

21

3

55

3

414

10

6

19

0

5

10

15

20

25

1Q20 2Q20 3Q20 4Q20

Strategic PEG Portco



9

4Q20 Aerospace Transactions

Note: ND = Not Disclosed(1) LTM EBITDA multiples are adjusted for tax benefit, where applicable

(1)

($ in millions)

KippsDeSanto acted as financial advisor in this transaction

Announced EBITDA EV / LTM

Date Buyer / Investor Target Target Description EV Revenue EBITDA Margin Rev. EBITDA

12/29/20 Alpine 4 Technologies, Ltd. Vayu (U.S.), Inc. Provides high-performance vertical take-off and landing ("VTOL") hybrid propulsion-

based, autonomous aircraft

ND ND ND ND ND ND

12/28/20 J.F. Lehman & Co. CTS Engines, LLC (portco of Platte River Equity) Provides maintenance, repair, overhaul, and testing services to owners and operators of

commercial jet engines worldwide

ND ND ND ND ND ND

12/23/20 Incodema, Inc. (portco of Core Industrial

Partners, LLC)

Majestic Metals, LLC Provides comprehensive in-house precision sheet metal manufacturing solutions,

including design and engineering support, laser cutting, punching, forming, welding,

assembly, and finishing

ND ND ND ND ND ND

12/22/20 CAE, Inc. Merlot Aero Limited Provides cloud-based operator crew performance solutions, underpinning lowest cost,

highest performance, and disruptive innovation strategies

$25.0 ND ND ND ND ND

12/22/20 Jet Parts Engineering, Inc. (portco of Vance

Street Capital LLC)

AeroSpares, Inc. Provides proprietary aftermarket replacement components, known as Parts

Manufacturing Approval ("PMA") parts, including highly engineered pressure switches

for the commercial and cargo markets

ND ND ND ND ND ND

12/22/20 Sunvair Aerospace Group, Inc. (portco of Blue

Sea Capital)

Mingo Aerospace, LLC Provides component repair services to aircraft operators and leading maintenance,

repair, and overhaul ("MRO") providers

ND ND ND ND ND ND

12/18/20 Moog, Inc. Genesys Aerosystems (portco of McNally

Capital, LLC)

Provides integrated avionics systems for military, special-mission, and civil operators $77.7 ND ND ND ND ND

12/18/20 Precinmac Precision Machining (portco of Pine

Island Capital Partners, LLC and Bain Capital

Credit, LP)

Viper Northwest, Inc. and Shields

Manufacturing, Inc.

Provides precision Computer Numeric Control ("CNC") machined components and

assemblies for semiconductor, life sciences, and aerospace customers

ND ND ND ND ND ND

12/14/20 Liberty Hall Capital Partners Comply365 Provides operational content and compliance management solutions supporting the

aerospace industry

ND ND ND ND ND ND

12/02/20 FL Technics (subsidiary of Avia Solutions Group) Wright International Provides aircraft line maintenance services in Canada ND ND ND ND ND ND

12/02/20 FLIR Systems, Inc. Altavian Provides small unmanned aerial systems ("UAS") for public and private sector customers ND ND ND ND ND ND

11/25/20 TransDigm Group, Inc. Cobham Aero Connectivity (portco of Advent

International)

Provides highly engineered antennas and radios for the aerospace customers $965.0 $225.0 ND ND 4.29x ND

11/24/20 Ontic Flightline Electronics (Aircraft Instruments Line) Provides electro-mechanical and digital instruments used on various commercial and

military platforms

ND ND ND ND ND ND

11/18/20 Precision Aviation Group, Inc. (portco of

GenNx360 Capital Partners)

EFIX Aviation Support Provides MRO services for the defense, commercial aviation, and general aviation

segments of the Brazilian aerospace market

ND ND ND ND ND ND

11/16/20 CAE, Inc. Flight Simulation Company B.V. Provides airline total training solutions as well as instructor provisioning $82.9 ND ND ND ND ND

11/04/20 Sabena Technics AeroTech Pro Provides airframe maintenance in the military field ND ND ND ND ND ND



10

4Q20 Aerospace Transactions, cont.


(1)

($ in millions)




10/28/20 GC Atlas Holdings, LLC (in partnership with Goff

Capital, Inc. and Dirk Ellis)

Cascade Engineering Technologies Provides aerospace contract manufacturing, specializing in complex thin-wall monolithic

structures for Tier 1 aerospace and defense customers

ND ND ND ND ND ND

10/22/20 AML Global Eclipse (Subsidiary of AML Global) Eclipse Aerospace's Assets and Eclipse Aircraft

Project

Provides design and manufacturing of twin-engine light jets and single-engine turboprop

aircrafts

$5.3 ND ND ND ND ND

10/20/20 TechPrecision Corp. STADCO, Inc. Provides custom precision parts for the defense, aerospace, and precision industrial

industries, as well as a range of commercial organizations with specialized

manufacturing and tooling requirements

$1.2 $16.4 ND ND $0.1 ND

10/20/20 Fastener Distribution Holdings (portco of

Audax Private Equity)

Societe AHE, Inc. Provides aerospace hardware and fasteners specializing in the rotorcraft market ND ND ND ND ND ND

10/19/20 ARCH Global Precision, LLC (portco of The

Jordan Company)

Applied Resources, Inc. (doing business as

Morsch Machine)

Provides precision-machined parts, electronic mechanical support components,

enclosures, chassis, and modules for the commercial aviation, defense, and space

industries

ND ND ND ND ND ND

10/16/20 General Atomics Europe Gmbh RUAG’s Dornier 228 Programme and German

MRO business

Provides business aircraft and military helicopter MRO ND ND ND ND ND ND

10/15/20 Honeywell International, Inc. Ballard Unmanned Systems, Inc. (subsidiary of

Ballard Power Systems, Inc.)

Provides stored-hydrogen proton exchange membrane fuel cell systems that power UAS,

particularly those used for energy inspection, cargo delivery, and other commercial and

defense applications

ND ND ND ND ND ND

10/12/20 Broadtree Partners, LLC (in partnership with AE

Industrial Partners and Live Oak Bank)

Seanair Machine Co. Provides original equipment manufacturers ("OEM") precision machined parts in

support of tactical airlift, stealth tactical fighters, and high-altitude reconnaissance

platforms operated by the U.S. armed forces and allied nations

ND ND ND ND ND ND

10/06/20 Consolidated Machine & Tool Holdings, LLC

(portco of White Wolf Capital, LLC)

Delva Tool & Machine Corp. Provides contract machining, fabrication, engineering, and complex assembly services

for aerospace and defense customers

ND ND ND ND ND ND

10/06/20 IMG Companies, LLC (portco of Addison Capital

Partners)

Larkin Precision Machining, Inc. Provides design, engineering, and manufacturing services for complex, close-tolerance

components

ND ND ND ND ND ND

10/06/20 Avantus Aerospace, Inc. (portco of Inflexion

Private Equity and Auctus Industries)

California Screw Products Corp. Provides C-Class and composite parts for the aerospace and defense industry ND ND ND ND ND ND

10/05/20 AEVEX Aerospace, LLC (portco of Madison

Dearborn Partners, LLC and CoVant

Management)

IKHANA Group, Inc. and Geodetics, Inc. Provides aircraft engineering, modification, and maintenance solutions and commercial

high-precision positioning and assured navigation products and solutions

ND ND ND ND ND ND

10/01/20 Woolpert, Inc. Jviation, Inc. Provides airport planning, survey, architecture, engineering, and construction

management services

ND ND ND ND ND ND



11

4Q20 Defense Transactions


(1)

($ in millions)




12/30/20 CTS Corp. Sensor Scientific, Inc. Provides high-quality thermistors and temperature sensor assemblies serving OEMs for

applications that require precision and reliability in the medical, industrial, and defense

markets

ND ND ND ND ND ND

12/23/20 Elbit Systems of America, LLC Sparton Corporation (portco of Cerberus

Capital Management)

Provides a range of advanced proprietary products for domestic and foreign defense

and commercial needs


12/22/20 Fralock (portco of Arsenal Capital Partners) Mapson Engineering, Inc. Provides high-resolution, large format precision graphic solutions for specialty electronic

applications

ND ND ND ND ND ND

12/22/20 INVISIO A/S Racal Acoustics Ltd. (subsidiary of TransDigm

Group, Inc.)

Provides communication and hearing protection systems for high-noise environments $20.5 $15.6 ND ND 1.31x ND

12/21/20 Valkyrie Enterprises, Inc. Atlantic CommTech Corp. Provides communications infrastructure, security solutions, radio frequency

communications, Information Technology ("IT") engineering, installation, maintenance,

and repair services

ND ND ND ND ND ND

12/20/20 Lockheed Martin Corporation Aerojet Rocketdyne Holdings, Inc. Provides propulsion and energetics to space, missile defense, strategic, tactical missile,

and armaments customers throughout the world

$4,400.0 $2,039.2 $302.1 14.8% 2.16x 14.6x

12/15/20 Charger Investment Partners Advanced Composite Products and

Technology, Inc. (majority stake)

Provides engineered composite structures for defense, space, aviation, automotive,

marine, and subsea telecom applications

ND ND ND ND ND ND

12/16/20 Oshkosh Corp Pratt & Miller Engineering and Fabrication Provides advanced engineering, technology, innovation, and robotics for ground vehicle

markets


12/15/20 Redwire, LLC (portco of AE Industrial Partners) LoadPath, LLC Provides payload adapters, deployable structures, and thermal products for the space

industry

ND ND ND ND ND ND

12/14/20 Federal Republic of Germany Hensoldt (portco of KKR) (25.1% stake) Provides defense and security electronics for civilian and military markets ND ND ND ND ND ND

12/11/20 Amphenol Corp. MTS Systems Corp. Provides advanced test systems, motion simulators, and precision sensors $1,700.0 $828.6 $168.2 20.3% 2.05x 10.1x

12/09/20 AeroVironment, Inc. Telerob GmbH Provides ground-based robotic solutions $45.4 ND ND ND ND ND

12/07/20 Mercury Systems, Inc. Physical Optics Corp. Provides avionics and mission subsystems for defense applications $310.0 ND ND ND ND ND

12/03/20 SK Group & Plasan ELVO Provides armored infantry vehicles and other armored vehicles for the Greek military ND ND ND ND ND ND

12/01/20 Timken Co. Aurora Bearing Company Provides rod ends and spherical plain bearings for industrial sectors including aerospace

and defense, racing, off-highway equipment, and packaging

ND $30.0 ND ND ND ND

11/25/20 CAE, Inc. TRU Simulation + Training Canada

Inc. (subsidiary of Textron, Inc.)

Provides training devices, programs, and support for the aerospace and defense

industries




12

4Q20 Defense Transactions, cont.


(1)

($ in millions)




11/23/20 Kratos Defense & Security Solutions, Inc. 5-D Systems, Inc. Provides designing, development, integration, testing, modifications, and support to

unmanned, manned, and optionally-piloted vehicles

ND ND ND ND ND ND

11/23/20 Sagepeak Capital, LLC ENMET, LLC (portco of Benford Capital

Partners, LLC)

Provides oxygen monitors and toxic and combustible gas detectors for aerospace and

defense applications

ND ND ND ND ND ND

11/19/20 Voyager Space Holdings, Inc. The Launch Company, LLC Provides hardware, ground support equipment, and processes to help next generation

space companies gain access to orbit faster, cheaper, and more reliably

ND ND ND ND ND ND

11/19/20 Arcline Investment Management, LP Evans Capacitor Company Provides high-reliability, power dense capacitors, enabling customers to develop next

generation electronic systems for aerospace, defense, and industrial applications

ND ND ND ND ND ND

11/12/20 McKean Defense Group, Inc. Mikros Systems Corp. Provides electronic systems technology for advanced maintenance in military, industrial,

and commercial applications

$4.7 $5.4 $0.2 3.7% 0.86x 23.4x

11/10/20 Raytheon Technologies Blue Canyon Technologies, Inc. Provides small satellites and spacecraft systems components for the U.S. Air Force,

National Digital Stewardship Alliance, and the Defense Advanced Research Projects

Agency


11/05/20 Pacific Defense (portco of HCI Equity Partners) Spear Research, LLC Provides research and development, threat exploitation, data analytics, and platform

integration

ND ND ND ND ND ND

11/04/20 TE Connectivity DRI Relays, Inc. Provides electro-mechanically, hermetically-sealed relays, time delay devices, and

making sockets for applications that require high reliability and long life in harsh

environments

ND ND ND ND ND ND

11/02/20 Calian Group Ltd. Cadence Consultancy Ltd. Provides complex and realistic training environments for both defense and civil clients

across Europe and worldwide

ND $3.0 ND ND ND ND

10/29/20 Redwire, LLC (portco of AE Industrial Partners) Roccor, LLC Provides military and commercial hardware supplies in the small satellite market and

manufactures deployable booms, structures, antennas, thermal products, and solar

arrays for the space industry

ND ND ND ND ND ND

10/29/20 General Atomics Corp. Guidestar Optical Solutions Provides design and development of innovative optical solutions for uses in directed

energy, free space laser communications, and sensing and imaging through optical

turbulence

ND ND ND ND ND ND

10/29/20 Parsons Corp. Braxton Science and Technology Group Provides mission-critical solutions including spacecraft ground control and spacecraft

integration


10/27/20 Raptor Scientific, LLC (portco of L Squared

Capital Partners, LLC)

Sensor Concepts, Inc. Provides design and manufacturing of radar cross-section instruments and

measurement services used by aerospace and defense OEMs

ND ND ND ND ND ND

10/26/20 Micro Precision, Inc. (portco of Compass

Partners Capital LLC)

PRL, Inc. Provides high-tech alloy castings for U.S. Navy submarines ND ND ND ND ND ND

10/15/20 AAC Clyde Space SpaceQuest, Ltd Provides design, manufacture, integration, and launch support of space systems for

commercial and government agencies in the U.S. and internationally

$8.4 ND ND ND ND ND

10/09/20 Lockheed Martin Corporation Hypersonics Portfolio of Integration

Innovation, Inc.

Provides cyber and systems engineering, software engineering, flight training, advanced

training and services, special programs, hypersonic, corrosion protection, and interactive

training solutions

ND ND ND ND ND ND



13

4Q20 Defense Transactions, cont.


(1)

($ in millions)




10/07/20 AAC Clyde Space Hyperion Technologies B.V. Provides high-performance, miniaturized components, including high-reliability

electronics and mechatronic systems, for small spacecraft

$2.6 $1.4 $0.2 15.5% 1.86x 12.0x

10/07/20 Honeywell International, Inc. Rocky Research (portco of DC Capital Partners) Provides customized engineering and analytical services to commercial, industrial, and

defense customers

ND ND ND ND ND ND

10/07/20 Stable Road Acquisition Corp. Momentus, Inc. Provides in-space transportation and infrastructure services $1,200.0 ND ND ND ND ND

10/06/20 Arotech Corp. (portco of Greenbriar Equity

Group, L.P.)

Shooting Range Industries, LLC Provides live-fire shooting range solutions and equipment for military units, commercial

range operators, private citizens, and public safety organizations

ND ND ND ND ND ND

10/05/20 Sierra Bullets, LLC (subsidiary of Clarus Corp.) Barnes Bullets, LLC (subsidiary of Remington

Arms Company, LLC)

Provides environmentally sound, lead-free bullets for hunting, self-defense, and tactical

applications

$30.5 $21.8 ND ND 1.40x ND





01/04/21 Vectrus, Inc. HHB Systems Provides facilities management, logistics, engineering, enterprise operations, and asset

management solutions supporting IC projects

ND ND ND ND ND ND

12/28/20 Vectrus, Inc. Zenetex, LLC Provides management and technology support services to Federal government agencies

and commercial organizations


12/22/20 NuWave Solutions (portco of AE Industrial

Partners)

ProModel Government Services (subsidiary of

ProModel Corporation)

Provides mission critical predictive and prescriptive analytic software solutions for

decision support to the DoD and U.S. government

ND ND ND ND ND ND

12/21/20 BlueHalo (portco of Arlington Capital Partners) Fortego, LLC Provides advanced, end-to-end solutions in cyber analytics, vulnerability research, and

Computer Network Operations ("CNO") engineering

ND ND ND ND ND ND

12/21/20 BlueHalo (portco of Arlington Capital Partners) Base2, LLC Provides the design and development of cutting-edge cyber solutions across CNO,

Signals Intelligence ("SIGINT"), and Quick Reaction Capability ("QRC") domains

ND ND ND ND ND ND

12/15/20 Octo Consulting Group, Inc. (portco of

Arlington Capital Partners)

Sevatec, Inc. Provides mission-critical software development solutions and digital modernization

services

ND ND ND ND ND ND

12/14/20 NEOGOV PowerDMS Provides secure cloud-based policy, compliance, and accreditation management

solutions

ND ND ND ND ND ND

12/14/20 Maven Capital Partners Envitia Group plc Provides data and geospatial technology and services to Federal customers $22.9 $10.8 ND ND 2.13x ND

12/14/20 Intelligent Waves Ski Systems, Inc. Provides mobility and cybersecurity technology to IC agencies ND ND ND ND ND ND

12/14/20 ManTech International Corporation Tapestry Technologies Provides cyber defense solutions and expertise, including cyber architecture and policy

development, development, security, and operations-based ("DevSecOps") systems, and

software engineering and cyber training

ND ND ND ND ND ND

12/11/20 CCP Capital Strategies Executive Information Systems Provides software and related platforms for public sector clients ND ND ND ND ND ND

12/10/20 Leidos Holdings, Inc. 1901 Group (portco of Enlightenment Capital) Provides cloud, cybersecurity, and enterprise-scale digital modernization services and

capabilities that improve performance and reduce costs


12/09/20 J.F. Lehman & Company CodeMettle, LLC Provides custom software development and proprietary software solutions to manage

critical communication networks

ND ND ND ND ND ND

12/07/20 Veritas Capital Federal IT and Mission Support Services

business of Northrop Grumman

Provides a wide-range of advanced technology solutions to include cybersecurity, data

analytics, cloud, mission-critical application development, and advanced engineering to

defense, intelligence, space, civil, and health customers

$3,400.0 $2,300.0 ND ND 1.48x ND

12/04/20 By Light Professional IT Services, Inc. (portco of

Sagewind Capital, LLC)

Raydon Corporation Provides full-lifecycle solutions, including engineering, custom manufacturing, and supply

chain management solutions in support of the DoD's virtual training and simulation

programs

ND ND ND ND ND ND

12/03/20 NuWave Solutions (portco of AE Industrial

Partners)

BigBear, Inc. Provides cloud-based big data analytics solutions to the national security community ND ND ND ND ND ND

14

4Q20 Government Technology Services Transactions

Note: ND = Not Disclosed(1) LTM EBITDA multiples are adjusted for tax benefit, where applicable (2) Vectrus / HHB was announced on 01/04/21 but closed on 12/31/20

(1)

($ in millions)


(2)



15

4Q20 Government Technology Services Transactions, cont.


(1)

($ in millions)




12/01/20 Swish Data Corporation Titania Solutions Group, Inc. Provides DevSecOps services, intelligence training and operations, and drone and

counter-drone activities within the public sector

ND ND ND ND ND ND

12/01/20 Salesforce, Inc. Acumen Solutions Provides cloud consulting services, including customer service, sales acceleration,

engagement marketing, on-demand analytics, financial analysis, and digital

transformation solutions

ND ND ND ND ND ND

12/01/20 ASGN Incorporated Integrated Solutions Management, Inc. Provides Internet of Things ("IoT") technology, IT service, and operations management ND ND ND ND ND ND

11/30/20 Jacobs Engineering Group PA Consulting Group (65% Stake) (portco of

The Carlyle Group)

Provides consulting services, technology solutions, and innovation solutions in corporate

strategy, product development and manufacturing, and IT transformation

$2,400.0 ND ND ND ND ND

11/24/20 Jane's Group UK Limited (portco of Montagu

Private Equity, LLP)

Global Platforms & Systems (Analytics segment

of Avascent Group, Ltd.)

Provides defense market analytics businesses to support industry intelligence solutions ND ND ND ND ND ND

11/24/20 Jacobs Engineering Group The Buffalo Group Provides advanced analytics, targeting, cybersecurity, cloud mitigation, DevSecOps,

identity intelligence and biometrics, human intelligence, open-source and social media

analysis, geospatial intelligence, and cyber threat intelligence

ND ND ND ND ND ND

11/19/20 Gunnison Consulting Group, Inc. Global Solutions & Services Frameworks Provides IT service management, mobility engineering and management, cybersecurity

engineering and management, and IT engineering and integration

ND ND ND ND ND ND

11/18/20 Belcan, LLC (portco of AE Industrial Partners) Avista, Inc. (subsidiary of TransDigm Group,

Inc.)

Provides safety-critical and mission-critical software engineering services to the world's

leading OEMs in the aerospace, defense, industrial, and medical industries

ND ND ND ND ND ND

11/17/20 American Institutes for Research Kimetrica, LLC Provides research and evaluation, surveys, information management, and modeling and

simulation expertise

ND ND ND ND ND ND

11/16/20 PAE Metis Solutions Corporation (portco of Blue

Delta Capital Partners)

Provides intelligence analysis, operational and tactical training, and program

management

$92.0 ND $8.5 ND ND 9.7x

11/12/20 Avantus Federal (Portco of NewSpring Capital) MissionTech Solutions, LLC Provides consulting and solutions using data and technology to solve national security

challenges

ND ND ND ND ND ND

11/12/20 ManTech International Corporation Minerva Engineering Provides advanced cyber services that support the IC, including risk and vulnerability

assessment, incident response and cyber intrusion detection, and wireless signal

discovery

ND ND ND ND ND ND

11/11/20 Palo Alto Networks Expanse, Inc. Provides cybersecurity services to commercial and Federal clients $800.0 ND ND ND ND ND

11/11/20 Rosewood Private Investments General Informatics Provides IT managed services, cloud services, and IT constancy ND ND ND ND ND ND

11/09/20 GCOM Software, LLC (portco of Sagewind

Capital, LLC)

2020 Teknology, LLC Provides managed services and systems integration services ND ND ND ND ND ND

11/04/20 AE Industrial Partners Linkware, LLC Provides custom software solutions and consulting services to Federal government

organizations

ND ND ND ND ND ND



16

4Q20 Government Technology Services Transactions, cont.


(1)

($ in millions)




11/02/20 OpenGate Capital Management, LLC Aurotech, Inc. Provides digital services and business solutions for U.S. Federal healthcare and adjacent

Civilian agencies for which they design and implement information technology plans and

build technology powered business tools

ND ND ND ND ND ND

11/02/20 Belcan, LLC (portco of AE Industrial Partners) Telesis Corp. Provides innovative IT solutions for large, complex government customers with a focus

on highly differentiated services that deliver mission critical solutions for its customers

ND ND ND ND ND ND

10/30/20 Granicus, Inc. (portco of Vista Equity Partners) Calytera US, Inc. (portco of BuildGroup, LLC) Provides solutions to digitize and automate critical functions, optimize mobile

workforces, and deliver modern services to citizens

ND ND ND ND ND ND

10/30/20 DC Capital Partners, LLC Hill Technical Solutions, Inc. Provides highly technical, full-spectrum systems engineering and integration, advanced

technology development, systems architecture design and analysis, and hypersonic

design and testing solutions

ND ND ND ND ND ND

10/26/20 Francisco Partners Forcepoint (subsidiary of Raytheon

Technologies)

Provides cybersecurity solutions that protects the critical data and networks of

thousands of customers globally

$1,500.0 ND ND ND ND ND

10/26/20 PAE CENTRA Technology, Inc. Provides high-end intelligence support, information analytics, engineering services, and

other advanced technology solutions primarily serving the IC

$208.0 ND $20.0 ND ND 8.8x

10/26/20 Ansys Analytical Graphics, Inc. Provides mission-driven simulation, modeling, testing, and analysis software for

aerospace, defense, and intelligence applications

$700.0 $80.0 ND ND 8.75x ND

10/26/20 AE Industrial Partners PCI Provides cybersecurity, CNO, cloud, systems engineering, enterprise IT, and data

analytics to IC and DoD

ND ND ND ND ND ND

10/20/20 Continental Mapping Consultants (portco of

Bluestone Investment Partners)

TSG Solutions, Inc. Provides situation awareness, geospatial services, and proprietary solutions for secured

and unclassified environments

ND ND ND ND ND ND

10/16/20 Welsh, Carson, Anderson & Stowe GovernmentCIO Provides high-end technology and digital solutions to the Federal Health IT Services

market

ND ND ND ND ND ND

10/08/20 Xenith Solutions, LLC TRI-COR Industries Provides full-lifecycle enterprise business and IT solutions to Federal and local

governments

ND ND ND ND ND ND

10/07/20 Accenture plc Avenai Provides consulting and technology services to primarily the public sector market in

Canada

ND ND ND ND ND ND

10/02/20 ASGN Incorporated Skyris, LLC Provides remote sensing science, data science, and geospatial solutions in support of the

IC, defense, and national security missions

ND ND ND ND ND ND

10/01/20 DLH Holdings Corp. Irving Burton Associates, LLC Provides research, systems development, and other technology-enabled solutions to

various DoD agencies

$32.0 $25.0 ND ND 1.28x ND



Public Company Trading Analysis($ in millions, except per share amounts)

17Note: NM = Not MeaningfulSource: S&P Capital IQ, company filings, and KippsDeSanto research

Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EAircraft and Engine OEMs 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

The Boeing Company $214.06 61.2% $120,843 $154,954 $58,329 ($2,703) -4.6% $77,815 $6,296 8.1% 2.66x NM 1.99x 24.6x

General Electric Company 10.80 81.4% 94,607 157,306 79,320 5,652 7.1% 80,514 9,511 11.8% 1.98x 27.8x 1.95x 16.5x

Airbus SE 109.82 64.4% 86,030 91,819 56,504 4,680 8.3% 64,349 7,842 12.2% 1.63x 19.6x 1.43x 11.7x

Safran SA 141.83 76.1% 60,545 64,905 19,384 3,350 17.3% 21,497 4,191 19.5% 3.35x 19.4x 3.02x 15.5x

MTU Aero Engines AG 261.04 73.8% 13,846 13,173 4,984 735 14.8% 5,461 894 16.4% 2.64x 17.9x 2.41x 14.7x

Median 73.8% $86,030 $91,819 $56,504 $3,350 8.3% $64,349 $6,296 12.2% 2.64x 19.5x 1.99x 15.5x

Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EAerostructures 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Spirit AeroSystems Holdings, Inc. $39.09 52.0% $4,129 $5,734 $3,437 ($470) -13.7% $4,038 $190 4.7% 1.67x NM 1.42x 30.2x

Hexcel Corporation 48.49 60.2% 4,051 4,982 1,508 192 12.7% 1,440 242 16.8% 3.30x 25.9x 3.46x 20.6x

Triumph Group, Inc. 12.56 48.0% 655 2,300 2,115 123 5.8% 1,685 209 12.4% 1.09x 18.6x 1.37x 11.0x

Senior plc 1.22 47.5% 505 800 1,002 78 7.8% 983 98 10.0% 0.80x 10.2x 0.81x 8.1x

Median 50.0% $2,353 $3,641 $1,812 $101 6.8% $1,562 $199 11.2% 1.38x 18.6x 1.39x 15.8x



Public Company Trading Analysis, cont.($ in millions, except per share amounts)


Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EAerospace Suppliers 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Meggitt PLC $6.37 66.5% $4,956 $6,194 $2,417 $406 16.8% $2,571 $501 19.5% 2.56x 15.3x 2.41x 12.4x

Curtiss-Wright Corporation 116.35 77.6% 4,829 5,594 2,403 507 21.1% 2,517 547 21.7% 2.33x 11.0x 2.22x 10.2x

RBC Bearings Incorporated 179.04 96.7% 4,390 4,274 631 162 25.7% 621 156 25.2% 6.77x 26.3x 6.88x 27.3x

Arconic Corporation 29.80 94.3% 3,253 3,885 5,670 633 11.2% 6,531 740 11.3% 0.69x 6.1x 0.59x 5.2x

Moog Inc. 79.30 82.7% 2,580 3,515 2,810 139 4.9% 2,846 314 11.0% 1.25x 25.3x 1.24x 11.2x

Ducommun Incorporated 53.70 92.9% 629 920 629 87 13.9% 650 91 14.1% 1.46x 10.6x 1.42x 10.1x

Astronics Corporation 13.23 45.4% 408 572 501 32 6.3% 505 37 7.4% 1.14x 18.0x 1.13x 15.3x

Héroux-Devtek Inc. 11.07 65.2% 402 566 449 70 15.6% 442 67 15.2% 1.26x 8.1x 1.28x 8.4x

Median 80.1% $2,916 $3,700 $1,517 $151 14.7% $1,584 $235 14.7% 1.36x 13.1x 1.35x 10.7x

Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EAftermarket / MRO 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

TransDigm Group Incorporated $618.85 91.9% $33,688 $49,532 $4,759 $2,076 43.6% $4,949 $2,257 45.6% 10.41x 23.9x 10.01x 21.9x

HEICO Corporation 132.40 96.0% 16,660 17,303 1,698 440 25.9% 1,979 555 28.1% 10.19x 39.3x 8.75x 31.2x

Singapore Technologies Engineering Ltd 2.89 86.4% 9,004 10,244 5,411 728 13.5% 5,890 775 13.2% 1.89x 14.1x 1.74x 13.2x

Signature Aviation plc 5.28 95.1% 4,379 6,619 1,550 363 23.4% 1,822 418 23.0% 4.27x 18.2x 3.63x 15.8x

SIA Engineering Company Limited 1.49 68.4% 1,671 1,385 454 43 9.4% 425 12 2.9% 3.05x 32.4x 3.26x NM

AAR Corp. 36.22 75.5% 1,264 1,464 1,774 56 3.2% 1,753 115 6.6% 0.83x 26.2x 0.84x 12.8x

Median 89.2% $6,692 $8,432 $1,736 $402 18.4% $1,900 $487 18.1% 3.66x 25.0x 3.45x 15.8x





Stock Price % of 52 Market Enterprise CY2020E CY2021P EV / CY2020E EV / CY2021PDefense Primes 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Raytheon Technologies Corporation $71.51 45.1% $107,863 $134,025 $64,196 $9,454 14.7% $68,212 $10,394 15.2% 2.09x 14.2x 1.96x 12.9x

Lockheed Martin Corporation 354.98 80.2% 99,318 108,441 65,278 9,921 15.2% 68,022 10,616 15.6% 1.66x 10.9x 1.59x 10.2x

Northrop Grumman Corporation 304.72 79.1% 50,802 63,165 35,851 5,093 14.2% 37,364 5,338 14.3% 1.76x 12.4x 1.69x 11.8x

General Dynamics Corporation 148.82 78.3% 42,609 55,931 38,244 5,035 13.2% 38,970 5,155 13.2% 1.46x 11.1x 1.44x 10.8x

L3Harris Technologies, Inc. 189.02 81.8% 39,715 46,166 18,430 3,497 19.0% 19,405 4,040 20.8% 2.50x 13.2x 2.38x 11.4x

BAE Systems plc 6.67 72.7% 21,459 25,835 27,805 3,412 12.3% 29,054 3,757 12.9% 0.93x 7.6x 0.89x 6.9x

Median 78.7% $46,706 $59,548 $37,047 $5,064 14.5% $38,167 $5,247 14.8% 1.71x 11.8x 1.64x 11.1x

Stock Price % of 52 Market Enterprise CY2020E CY2021P EV / CY2020E EV / CY2021PDefense Systems 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Safran SA $141.83 76.1% $60,545 $64,905 $19,394 $3,351 17.3% $21,389 $4,159 19.4% 3.35x 19.4x 3.03x 15.6x

Huntington Ingalls Industries, Inc. 170.48 60.9% 6,903 8,625 9,018 992 11.0% 9,114 751 8.2% 0.96x 8.7x 0.95x 11.5x

FLIR Systems, Inc. 43.83 73.7% 5,748 6,261 1,892 415 21.9% 1,933 459 23.8% 3.31x 15.1x 3.24x 13.6x

Kongsberg Gruppen ASA 20.56 99.3% 3,696 3,434 3,018 377 12.5% 3,298 418 12.7% 1.14x 9.1x 1.04x 8.2x

AeroVironment, Inc. 86.90 87.1% 2,077 1,743 394 63 16.0% 455 79 17.3% 4.43x 27.7x 3.83x 22.1x

Cubic Corporation 62.04 88.0% 1,956 2,778 1,477 158 10.7% 1,563 191 12.2% 1.88x 17.6x 1.78x 14.5x

Median 81.6% $4,722 $4,847 $2,455 $396 14.2% $2,615 $439 15.0% 2.59x 16.3x 2.41x 14.1x





Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EDefense Electronics / Comm. 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Teledyne Technologies Incorporated $391.98 98.2% $14,457 $14,930 $3,121 $608 19.5% $3,297 $679 20.6% 4.78x 24.5x 4.53x 22.0x

Mercury Systems, Inc. 88.06 91.5% 4,932 4,759 841 183 21.8% 931 206 22.2% 5.66x 26.0x 5.11x 23.1x

Kratos Defense & Security Solutions, Inc 27.43 96.1% 3,367 3,392 761 78 10.2% 865 94 10.8% 4.46x 43.7x 3.92x 36.2x

Viasat, Inc. 32.65 44.1% 2,205 4,091 2,269 481 21.2% 2,547 531 20.9% 1.80x 8.5x 1.61x 7.7x

Ultra Electronics Holdings plc 28.29 81.6% 2,008 2,141 1,182 207 17.5% 1,227 214 17.4% 1.81x 10.3x 1.74x 10.0x

Comtech Telecommunications Corp. 20.69 55.4% 517 733 558 63 11.3% 670 86 12.8% 1.31x 11.6x 1.09x 8.6x

Median 86.5% $2,786 $3,741 $1,012 $195 18.5% $1,079 $210 19.0% 3.13x 18.1x 2.83x 16.0x

Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EHomeland Security 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Smiths Group plc $20.54 84.6% $8,141 $9,739 $3,390 $720 21.2% $3,396 $659 19.4% 2.87x 13.5x 2.87x 14.8x

Axon Enterprise, Inc. 122.53 90.9% 7,787 7,285 636 125 19.7% 738 125 17.0% 11.46x 58.2x 9.87x 58.1x

MSA Safety Incorporated 149.39 96.1% 5,819 6,013 1,296 274 21.1% 1,373 296 21.6% 4.64x 22.0x 4.38x 20.3x

OSI Systems, Inc. 93.22 90.8% 1,671 1,941 1,098 177 16.2% 1,174 196 16.7% 1.77x 10.9x 1.65x 9.9x

Smith & Wesson Brands, Inc. 17.75 63.9% 994 984 997 282 28.3% 711 167 23.5% 0.99x 3.5x 1.38x 5.9x

Median 90.8% $5,819 $6,013 $1,098 $274 21.1% $1,174 $196 19.4% 2.87x 13.5x 2.87x 14.8x





Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EGovernment Services 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Leidos Holdings, Inc. $105.12 83.5% $14,961 $19,647 $12,432 $1,327 10.7% $13,955 $1,453 10.4% 1.58x 14.8x 1.41x 13.5x

Booz Allen Hamilton Holding Corporation 87.18 95.6% 12,022 13,513 7,951 823 10.4% 8,553 854 10.0% 1.70x 16.4x 1.58x 15.8x

CACI International Inc 249.33 86.4% 6,288 8,248 5,919 628 10.6% 6,342 675 10.6% 1.39x 13.1x 1.30x 12.2x

SAIC 94.64 94.2% 5,510 8,262 7,137 627 8.8% 7,701 702 9.1% 1.16x 13.2x 1.07x 11.8x

Perspecta Inc. 24.08 81.8% 3,876 6,391 4,439 701 15.8% 4,078 646 15.8% 1.44x 9.1x 1.57x 9.9x

ManTech International Corporation 88.94 94.6% 3,589 3,604 2,508 224 8.9% 2,660 239 9.0% 1.44x 16.1x 1.36x 15.1x

ICF International, Inc. 74.33 78.0% 1,402 1,936 1,470 137 9.3% 1,576 149 9.4% 1.32x 14.1x 1.23x 13.0x

PAE Incorporated 9.18 71.9% 845 1,503 2,647 176 6.6% 3,047 205 6.7% 0.57x 8.6x 0.49x 7.3x

Vectrus, Inc. 49.72 83.9% 578 593 1,402 57 4.1% 1,518 71 4.7% 0.42x 10.4x 0.39x 8.4x

VSE Corporation 38.49 91.7% 425 701 667 56 8.4% 688 83 12.0% 1.05x 12.6x 1.02x 8.5x

Median 85.2% $3,733 $4,998 $3,543 $426 9.1% $3,562 $442 9.7% 1.36x 13.2x 1.26x 12.0x

Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EGovernment Technology Software 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Tyler Technologies, Inc. $436.52 93.6% $17,604 $17,048 $1,125 $328 29.1% $1,206 $357 29.6% NM NM NM NM

NIC Inc. 25.83 96.4% 1,731 1,508 438 107 24.5% 438 112 25.7% 3.44x 14.1x 3.44x 13.4x

GTY Technology Holdings Inc. 5.18 70.1% 277 292 49 (16) -32.4% 60 (4) -7.2% 5.94x NM 4.86x NM

Median 93.6% $1,731 $1,508 $438 $107 24.5% $438 $112 25.7% 4.69x 14.1x 4.15x 13.4x





Stock Price % of 52 Market Enterprise CY2020 CY2021E EV / CY2020 EV / CY2021EEngineering & Construction 12/31/20 Week High Cap Value Rev. EBITDA Margin Rev. EBITDA Margin Rev. EBITDA Rev. EBITDA

Jacobs Engineering Group Inc. $108.96 98.0% $14,163 $15,601 $13,602 $1,058 7.8% $14,159 $1,164 8.2% 1.15x 14.7x 1.10x 13.4x

AECOM 49.78 93.6% 7,505 8,893 13,215 761 5.8% 13,113 823 6.3% 0.67x 11.7x 0.68x 10.8x

Tetra Tech, Inc. 115.78 91.0% 6,226 6,638 2,321 265 11.4% 2,474 289 11.7% 2.86x 25.1x 2.68x 23.0x

KBR, Inc. 30.93 96.9% 4,408 5,054 5,802 461 7.9% 5,854 545 9.3% 0.87x 11.0x 0.86x 9.3x

Parsons Corporation 36.41 80.2% 3,667 3,923 3,996 351 8.8% 4,233 392 9.3% 0.98x 11.2x 0.93x 10.0x

Babcock International Group PLC 3.82 43.1% 1,931 4,152 6,327 861 13.6% 6,313 822 13.0% 0.66x 4.8x 0.66x 5.1x

Median 92.3% $5,317 $5,846 $6,065 $611 8.4% $6,084 $684 9.3% 0.93x 11.4x 0.90x 10.4x



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